Question:

Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements and choose the correct option.

Assertion (A): Silver from Peru and Mexico enhanced the wealth of Europe in the sixteenth century.
Reason (R): Europe used this silver to finance its trade with Asia.

Show Hint

Check the direction of each sentence. One describes silver coming into Europe and the other describes it going out to Asia. Money going out cannot explain why wealth came in.
Updated On: Sep 15, 2026
  • Both (A) and (R) are true and (R) is the correct explanation of (A).
  • Both (A) and (R) are true, but (R) is not the correct explanation of (A).
  • (A) is true, but (R) is false.
  • (A) is false, but (R) is true.
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The Correct Option is B

Solution and Explanation

Concept:
  • Each statement is first judged true or false on its own, and only then is the link between the two examined.
  • The chapter states two parallel effects of American silver, so the danger here is assuming that one caused the other.

Step 1: Judge the Assertion.
Precious metals, particularly silver, from mines in present-day Peru and Mexico enhanced the wealth of Europe. Shiploads of silver reached Spain and from there spread across the continent.
The Assertion is true.

Step 2: Judge the Reason.
That same silver financed European trade with Asia. European merchants had little that Asian markets wanted, so they paid for spices, textiles and porcelain largely in silver.
The Reason is true.

Step 3: Test whether the Reason explains the Assertion.
The Assertion is about wealth coming into Europe. The Reason is about that wealth being spent on trade with Asia. Spending the silver is what happened after Europe became richer, not the cause of it becoming richer.
Europe grew wealthy because the mines poured silver in, and it then used that silver abroad.

Step 4: Choose the option.
Both statements are true but the second does not explain the first, which is option (B).

Final Answer: (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
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